Could Chinese Real Estate Be The Mother Of All Bubbles?

By on August 10, 2010

Jim Quinn at Minyanville has posted some interesting charts from Bud Conrad showing the dramatic rise of Chinese real estate values.

Take a gander at home prices in China. Since the 2008 financial crisis, the Chinese housing market has skyrocketed 60%. There are now 65 million vacant housing units. The question is no longer whether there’s a Chinese housing bubble, but when will it pop. There’s one thing that bubbles always do: pop!

It appears the Chinese may have overstimulated their economy in response to the crisis of 2008-2009:

The Chinese authorities have printed and instructed the banks to make loans for shopping malls, apartment buildings, office towers, and condo towers. Average citizens have bought as many as five condos. Everyone knows that real estate only goes up. Their $585 billion stimulus package was used to build entire cities that sit unoccupied. The 2.2-million-square-foot South China Mall, with room for 2,100 stores, sits completely vacant. The Chinese have taken the concept of “bridges to nowhere” to a new level.

Source: Minyanville

One Comment

  1. Tayten

    August 17, 2011 at 8:36 am

    Thanky Thanky for all this good infotrmiaon!

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